Solved

If the Marginal Propensity to Consume (MPC) Is 0

Question 89

Multiple Choice

If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is:

A) 2.
B) 5.
C) 8.
D) 10.

Related Questions

Q84: A $2,000 decrease in investment will shift

Q85: Exhibit 9-5 Keynesian aggregate expenditures model where

Q86: At the equilibrium level of real GDP,

Q87: If consumption expenditures are $200 billion, total

Q88: Using the aggregate expenditure-output model, assume the

Q90: On the graph of GDP, government spending

Q91: To close a recessionary gap using fiscal

Q92: In the aggregate expenditures model, if aggregate

Q93: Suppose equilibrium real GDP is currently at

Q94: If the spending multiplier is equal to